World Wrestling Entertainment (WWE) Bucks The Bear Market Trend
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World Wrestling Entertainment, Inc. is an integrated media and entertainment company. The firm is engaged in the production and distribution of content through various channels including the premium over-the-top network monetized through license arrangements or through direct-to-consumer subscriptions, content rights agreements, premium live event programming, filmed entertainment, live events, licensing of various WWE themed products, and the sale of consumer products featuring its brands.
Take a look at the 6-month chart of World (WWE) below with my added notations:
WWE has formed a rising channel pattern since the beginning of 2022. A channel is formed through the combination of a trend line support that runs parallel to a trend line resistance. When it comes to channels, any (3) points can start the pattern, but a 4th test or more help to confirm it.
The Tale of the Tape: WWE has formed a channel. A long trade could be entered on a pullback to the channel support, which is currently approaching $70. Short trades could be entered at channel resistance or if the stock were to break below the channel support.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key…
Good luck!
Christian Tharp, CMT
